Intel and Apple May Join Forces on New Chips

As Intel scours the globe in a talent search to replace outgoing CEO Paul Otellini, a report from Reuters suggests that the newest CEO could have a decision to finally partner with Apple on his or her hands. Sources indicate that the company's future profitability could rest on a transformation into a contractor for chipset building — and Apple is the surefire way to crack into the mobile market.

Taking up a contractor role is not Intel's usual means of operations, as it often releases its own uniquely developed products for inclusion in computers. But Reuters' sources indicate that manufacturing chips to the specifications of other companies could not only increase production rates of many of Intel's restless manufacturing companies, but also give it an entre into the mobile market — an arena in which Intel has largely ignored due to underestimating the impact of smartphones and tablets.

Speculation has run wild since Intel announced that it would be making chipsets for fellow designer Altera, the first ever so-called "foundry" project by the company. Insiders told Reuters that Apple and Intel have met over the past year and have yet to come to an agreement, but designing chipsets for the Cupertino company would certainly give Intel the hands-on experience of working with a mobile platform.

Whatever the next path, Intel is at a crossroads: with its share in the mobile market at less than 1% and the rate of PC sales dwindling year over year, the company's next CEO is in for a world of decisions.

For more insights into Intel's future, read the Reuter's report here. What do you think of an Intel and Apple partnership? Let us know in the comments.

Lauren Hockenson is a tech reporter and 8-bit enthusiast who dreams of being a wizard. She can be found on MyIGN at lhockenson or on Twitter at @lhockenson.